Ripple is consolidating inside a symmetrical triangle pattern with its higher lows and lower highs. This digital asset has been particularly resilient, despite the sharp declines seen in the crypto market in the past few hours.
In fact, Ripple has overtaken ethereum in terms of total market cap, so investors are paying particularly close attention to this “flippening” that has also taken social media by storm. The 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside or that more gains are likely in the works. This indicates that resistance is more likely to break than to hold or that support is more likely to hold than to break.
In that case, Ripple might have a shot at busting through the triangle top around the .5000 mark and climbing by the same height as the chart formation. This spans .4000 to around .6200, so the climb could be around .1200 in size.
However, stochastic is still heading lower to signal that sellers are in control at the moment. This could spur a test of the triangle bottom near the .4500 mark once more, likely encouraging more bulls to join in and defend the floor. The oscillator has quite some ground to cover before indicating oversold conditions so bearish pressure might last.
The selloff in crypto is being attributed to uncertainty due to the Bitcoin Cash hard fork and the actions taken by the SEC on unlicensed ICO operators. This has spooked investors into moving their funds elsewhere as exchanges might also be vulnerable and more losses might be waiting.
Meanwhile, Ripple continues to make progress in its partnerships, landing the 5th largest Southeast Asian bank as part of its cross-border payments system. Ripple will be working with Malaysia’s CIMB Group on enabling instant cross-border payments for CIMB’s markets.